85R18310 GRM-F
By: Isaac H.B. No. 2354
Substitute the following for H.B. No. 2354:
By: Bohac C.S.H.B. No. 2354
A BILL TO BE ENTITLED
AN ACT
relating to the use and allocation of municipal hotel occupancy tax
revenue in certain municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 351.101, Tax Code, is amended by adding
Subsection (o) to read as follows:
(o) In addition to the purposes provided by Subsection (a),
a municipality that has a population of not more than 10,000, that
contains an outdoor gear and sporting goods retailer with retail
space larger than 175,000 square feet, and that hosts an annual
wiener dog race may use revenue from the municipal hotel occupancy
tax to promote tourism and the convention and hotel industry by
constructing, operating, or expanding a sporting related facility
or sports field owned by the municipality, if the majority of the
events at the facility or field are directly related to a sporting
event in which the majority of participants are tourists who
substantially increase economic activity at hotels in the
municipality. If a municipality to which this subsection applies
uses revenue derived from the municipal hotel occupancy tax for a
purpose described by this subsection, the municipality may not
reduce the percentage of revenue from that tax allocated for a
purpose described by Section 351.101(a)(3) to a percentage that is
less than the average percentage of that revenue allocated by the
municipality for that purpose during the 36-month period preceding
the date the municipality begins using the revenue for a purpose
described by this subsection.
SECTION 2. Section 351.1078, Tax Code, is amended to read as
follows:
Sec. 351.1078. ALLOCATION OF REVENUE: CERTAIN
MUNICIPALITIES. (a) A municipality that spends municipal hotel
occupancy tax revenue as authorized by Section 351.101(i) or (o):
(1) may not use municipal hotel occupancy tax revenue
for the acquisition of land for the sporting related facility or
sports field described by that subsection;
(2) shall annually determine and prepare and publish
on the municipality's Internet website a report on the events held
at the facility or field, the number of hotel room nights
attributable to events held at the facility or field, and the amount
of hotel revenue and municipal tax revenue attributable to the
sports events and tournaments held at the facility or field for five
years after the date the construction expenditures are completed;
and
(3) may only spend hotel occupancy tax revenue for
operational expenses of the facility or field if the costs are
directly related to a sporting event in which the majority of
participants are tourists who substantially increase economic
activity at hotels in or near the municipality.
(b) The municipality shall reimburse to the municipality's
hotel occupancy tax revenue fund from the municipality's general
fund any expenditure in excess of the amount of area hotel revenue
attributable to sporting events held at the sporting related
facility or sports field described by Section 351.101(i) or (o) for
five years after the date the construction or expansion of the
facility or field described by that subsection is completed.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.